[Solved] Deflation is a situation in which -

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Q.	Deflation is a situation in which -
A.	The value of money is falling.
B.	The price of goods is increasing.
C.	The value of money is increasing.
D.	The price level is stagnant.
Answer» C. The value of money is increasing.
Explanation: Deflation is a situation where the prices of goods and commodities in a country go down. i.e., there is negative inflation. This is caused due to reduced supply of money/credit. Inflation reduces the real value of money over time; conversely, deflation increases the real value of money - the currency of a national or regional economy.

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